Legislation to make at least 40 trees mandatory per acre.

To: Mr. Vijai Sharma, Secretary of Ministry of Environment and Forests

I wish to suggest a law, that could ensure better tree cover protection. Here it is: 1. Law that states minimum trees to be on every acre. Example: Law stating that there should be minimum 40 trees on every acre. 2. Law stating that incentive shall be granted to person who holds more than the minimum requirement. Example: Person holding 50 trees per acre should be rewarded by tree credits. 3. Law stating that punishment shall be imposed to person who holds less than the minimum requirement. Example: Person holding 20 trees per acre should purchase tree credits.

Why is this important?

Need for controlling the rate of reducing tree cover is urgent.

Reduced tree cover + Increasing CO2 is leading to Global Warming (or should I say Warning?).

We cannot play with nature for long. Surely we need a law that checks on the environment, even if it costs financial growth. (What is more important in the end? the money or the life?)

Do we want a developed country that gets struck with natural calamities every few months? (which in turn hampers the financial growth)

This definitely does not mean that such law will reduce a country's growth. On the contrary I believe it will surge our country's growth.

How it will be delivered

Once I get the signatures, I'd personally deliver this to the Secretary of Ministry of EoF and talk to them about this.

Having your support will put me in a strong position. Thank you.
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Welcome!

We are in need of economic policy that will sustain environment for future generations. Share your opinion and join the conversation by commenting to this post. I will be reading them personally 🙂

Can’t think of any idea? In the mean time, why don’t you click here and read an awesome petition?

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Tale of 3 Friends!

Long ago there were 3 friends, namely Money, Earth and Humans Money said to Earth, “I shall die if you don’t help me. Will you allow me to prosper a little on your account?” Earth happily allowed Money.

Money started getting   popular amongst Humans. Money and Humans became best friends. They both started cutting trees, killed animals, raised buildings and factories that touched skies. These activities caused Earth a lot of pain.

Earth was left in solitude by its friends. Money wasn’t even talking to Earth. As a result Earth became sick and weak. This led to adverse consequences like water becoming undrinkable, air becoming unbearably hot and soil becoming infertile. In the meantime Humans started suffering.

A day came when Earth shivered with weakness. This led to a massive Earthquake. In few seconds huge buildings and factories were brought to ground. All the past efforts of Money were now into the dust.

Money came to Earth sobbing, “Why did you do that?” Earth kept quiet.

This catastrophe opened eyes of many Humans and they again became friends with Earth.

Earth being of soft-nature said to Money, “I shall allow you to prosper further, but on one condition.”

Money was surprised at mercy shown by Earth.

“You should make such monetary policy that takes care of me.”

Money immediately apologized to Earth and thanked it for generosity. Since that day all of them lived happily and no disasters occurred.

This can be seen as over-dramatization of the scenario but truth behind it need not be emphasised. We are in urgent need of an economic policy reform that will keep a check on our environment.

Don’t tell me about Carbon Credits. I have studied it for long, only to believe that it does little good than what it promises. We need a much better system than Carbon Credit, a system which is efficient, effective, transparent and easy-to-adopt.

Have a suggestion or idea or feedback to give? Mail me at paraskedia@yahoo.com

Show-your-love-for-the-nature-by-clicking-here

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Join the conversation to discuss economic policy that does good to Environment!

We are in need of such economic policy reforms that keeps a check on our environment. But we need to keep in mind the current problems of the economy while framing them. Before you comment just have a look at the guidlelines of a good policy

  1. It must be practical and easy to apply.
  2. It must be in harmony with the economic conditions.

Purpose here is to find a economic policy together that benefits our environment and not otherwise. If possible a club can to discuss regarding the same, which can be convened once a week.

“Remember you are helping the whole humanity by helping environment!”

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Tree Credit, Idea better than Carbon Credit?

All environment-savvy must have heard about tree credits; And will put it off saying idea that the idea is not good enough, but my idea of  “tree credits” is different.

I’ve been studying the carbon credit system for a long time, only to believe in its uselessness.

  • The carbon credits process is slow and lengthy.
  • It is vague and inaccurate.
  • Huge scope of corruption.

We are in need of a simple, transparent and efficient system that keeps a proper check on environment. So here is my idea of tree credit;

  • Minimum 40 trees should be made compulsory on every acre of land.
  • For example, Ram has 10 acres of land. Then he must have at least 400 trees (10 acres x 40 trees per acre) on these 10 acres.
  • If Ram has less than 400 trees(in this case) then he will be penalized.
  • If Ram has more than 400 trees(in this case) then he will be rewarded.

In short;

  • This idea will turn trees into a potential investment option.
  • It will make at least 40 trees per acre for all land holders.
  • This will result in flow of cash from nature haters to nature lovers.

This rewarding/penalizing process shall take place through the medium of tree credits. For example, a person to be rewarded will be credited with tree credits in his/her tree credit account; whereas a person to be penalized shall have his tree credit account debited by that many tree credits for which he is to be penalized.

These tree credits can be traded in an open market at their market price prevailing; which will be decided by buying and selling pressure.

How shall the tree credits be rewarded/penalized? The below formula will be used to determineThe formula may be understood as follows.

Sr. no
Formula in bits and pieces
Can also be called as
1
Total land ownership X 40 trees per acre
Minimum Trees that must be held.
2
Total no. of trees – (Total land ownership X 40 trees per acre)
Additional trees held over and above minimum requirement of 40 t.p.a.
3
Tree Credit = Age factor of trees X  Additional trees held by you
Tree Credits

Age factor of trees can be found by the following table;

Age of the tree
Age Factor
0-3
0.11
4
0.44
5
0.568
6
0.667
7
0.712
8
0.85
9
0.887
10
0.89
The above table has age factors adjacent to the age of the trees. Check the age of the trees and the number adjacent to it will be taken as age factor of the trees. Higher the age factor, Higher will be the tree credits.
Don’t forget to sign a petition here if you liked the idea;
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An Idea similar to Carbon Credit, called Tree Credit!

I aim at planting a good idea in your mind.

We all know beautiful glaciers are melting daily in some part of the world because of Global Warming. Yet we do nothing but relish the thought of not contributing significantly towards it.

I don’t expect you to go to Antarctica and hold on to it. But do your least by reading and sharing this with others.

Being a nature lover and a CA student, I decided to design a scheme that will control global warming and supercharge economy.

Carbon Credit system has played a vital role in saving environment. What if we apply the same concept to trees and call it Tree Credit!

Tree Credit will be benefit given for planting and possessing trees. More a person will plant and possess, more tree credit he will earn.

One can sell these credits to others. Needless to say one who will possess no or less trees will have to buy tree credits from those who have earned.

One will have to purchase Tree Credits if they have less than 40 trees per acre

Consider JSW Ltd that owns 500 acres of land all over India. Going by the above rule, JSW should have at least 40 trees per acre.

So overall it should own at least 20,000 (500 x 40) trees to avoid purchasing Tree Credits.

How can one earn Tree Credits?

I aim at planting a good idea in your mind.

We all know beautiful glaciers are melting daily in some part of the world because of Global Warming. Yet we do nothing but relish the thought of not contributing significantly towards it.

I don’t expect you to go to Antarctica and hold on to it. But do your least by reading and sharing this with others.

Being a nature lover and a CA student, I decided to design a scheme that will control global warming and supercharge economy.

Carbon Credit system has played a vital role in saving environment. What if we apply the same concept to trees and call it Tree Credit!

Tree Credit will be benefit given for planting and possessing trees. More a person will plant and possess, more tree credits he will earn.

One can sell these credits to others. Needless to say, one who will possess no or less trees will have to buy tree credits from those who have earned.

One will have to purchase tree credits if he owns less than 40 trees per acre.

Consider JSW Ltd that owns 500 acres of land all over India. Going by the above rule, JSW should have at least 40 trees per acre.

So overall it should own at least 20,000 (500 x 40) trees to avoid purchasing Tree Credits.

How can one earn Tree Credits?

Land owned> If land owns less than 10,000 sq. feet of land More than 10,000 but less than 1,00,000 sq. feet of land More than 1,00,000 sq. feet of land
Tax Slab

Tree Credit’ Rate

10% 20.00% of trees owned 17.50% of trees owned 15% of trees owned
20% 17.50% of trees owned 15.00% of trees owned 12.50% of trees owned
30% 15.00% of trees owned 12.5% of trees owned 10% of trees owned

*This table will be provided by the Government. The figures are only illustrative and may undergo a change.

Wait, don’t get lost in the table. I’ll explain everything.

The 1st row in gray color denotes tax rates.

The 1st column in blue color denotes land held by the assessee.

The cells in yellow denote the rate at which tree credits will be allocated. It will be calculated as a % of trees owned by you.

There’s further calculation ahead, but we’ll see that later. As for now you should know that the higher tree credit rate is better.

As you must have observed, tree credit rates change as the tax rates and on amount of land ownership change, giving higher tree credit rate to people who earn less and own less land.

This will really benefit Indian economy, since majority population form part of 10% and 20% tax slab. Giving them higher tree credit means majority of India will participate in this.

Allotting higher tree credit rate to 10% and 20% tax slabs can reduce income inequality, which is very important for economy to grow.

The rate of tree credit starts to fall as your land ownership will increase. Logic?

To encourage more tree plantation in city. People who own land in cities are usually small in size generally because of high cost and scarce availability. Also city of any country is the major pollution generator.

Having understood the table, let’s move on to the further calculations.

Say during the year you have planted 30 trees

Assume you fall in 10% Tax slab and own less than 10,00 sq. feet of land.

As per the above table, you will be eligible for 20% of trees owned by you.

i.e. 30 trees x 20%

i.e. 6%

Since tree credit rate is directly linked to the number of trees you possess, every additional tree planted will increase your tree credit rate.

This rate of tree credit will be used as % of your Gross Total Income and Deduction availed by you under chapter VI of Income Tax Act.

So, check the Gross Total Income in your computation.

Say you had GTI of Rs. 3,00,000

So the Tree Credit you get will get is 3,00,000 x 6%

= 18,000 Tree Credits

Now in your computation check deduction u/s 80 availed by you.

Say you availed 1,00,000.

So additionally Tree Credit you get will be 1,00,000 x 6%

= 6,000 Tree Credits

=> 18,000 + 6,000 = 24,000 Tree Credits for the 1st year.

As you can see, Tree Credit is directly related to your GTI and deduction under chapter VI.

It acts as a de-motivator to hide income and also invest more under Chapter VI.”

Say in the 2nd year you planted 50 trees.

Now you own total 80 trees, 30 planted in the 1st year and 50 in the 2nd.

The Tree Credits will be allowed on cumulative number of trees. That means, trees planted in previous years will earn tree credits in future years too, provided they are alive!

Assuming all other things remain constant, 2nd year you will be eligible for 64,000 Tree Credit.

How?

=> 80 trees * 20% = 16%

=> (3,00,000 GTI+1,00,000 Deduction)*16%= 64,000 Credits.

Now his accumulated Tree Credit will be 24000 + 64000 = 88,000 (provided you don’t sell tree credits to anyone)

The rate at which these tree credits can be sold will be decided by appropriate government department.

Carbon Credit focuses on reducing the carbon emissions from the root, whereas this scheme will focus on increasing the carbon absorption capacity of earth (carbon sequestration)”

Few question that arise here are like
  1. Whether who will check if assessee should purchase Tree Credits or not?
  2. If the Tree Credit claim of assessee is real or bogus?
  3. Who will physically verify the trees, to check if they really exist?

Ever heard of Arborists? They are specialist in trees. They know everything about trees.

These guys will be called as ‘Certified Arborists’ only after they pass a set of exams held by government. Just like a Chartered Accountant is called after he passes exam held by ICAI.

In short, Arborists will be the Chartered Accountants of the assessee’s Trees.

What if a person doesn’t own any land? Where will he plant?

The government will conduct Public Plantation Scheme (PPS) every year.

Government will allocate certain area of land every year for this purpose. This land will be allocated for purpose of plantation of trees only by people who don’t own land.

It will be assumed that they own 10,000 sq. feet of land only for the purpose of calculating tree credits. By planting trees in PPS and following the given table they can earn tree credits in the same manner like others who own land.

How is this good for the economy?

  1. This will create tons of employment opportunities.
    • Employment by way of Certified Arborists.
    • Employment in government sector.
    • Employment by way of ancillary activities.
  1. Open up a new area of study, which had not been adopted by people till now.
  1. Government’s tax revenue will increase, as income from selling tree credits and ancillary services and goods.
  1. Encourage people to invest in Chapter VI, which will increase funds with government.
  2. Encourage people to show more income. Reduce Tax evasion
  3. Best of all, protect environment, and prevent natural disasters.

Those who wish to read this article in detail, visit: treesaviour.blogspot.com I’ve given solutions to many flaws there.

This article is nothing but a piece of paper until Government of India approves and implements it. So do your little contribution by sharing it with others, Thank You 🙂

i.e. 6%

Since tree credit rate is directly linked to the number of trees you possess, every additional tree planted will increase your tree credit rate.

This rate of tree credit will be used as % of your Gross Total Income and Deduction availed by you under chapter VI of Income Tax Act.

So, check the Gross Total Income in your computation.

Say you had GTI of Rs. 3,00,000

So the Tree Credit you get will get is 3,00,000 x 6%

= 18,000 Tree Credits

Now in your computation check deduction u/s 80 availed by you.

Say you availed 1,00,000.

So additionally Tree Credit you get will be 1,00,000 x 6%

= 6,000 Tree Credits

=> 18,000 + 6,000 = 24,000 Tree Credits for the 1st year.

As you can see, Tree Credit is directly related to your GTI and deduction under chapter VI.

It acts as a de-motivator to hide income and also invest more under Chapter VI.”

Say in the 2nd year you planted 50 trees.

Now you own total 80 trees, 30 planted in the 1st year and 50 in the 2nd.

The Tree Credits will be allowed on cumulative number of trees. That means, trees planted in previous years will earn tree credits in future years too, provided they are alive!

Assuming all other things remain constant, 2nd year you will be eligible for 64,000 Tree Credit.

How?

=> 80 trees * 20% = 16%

=> (3,00,000 GTI+1,00,000 Deduction)*16%= 64,000 Credits.

Now his accumulated Tree Credit will be 24000 + 64000 = 88,000 (provided you don’t sell tree credits to anyone)

The rate at which these tree credits can be sold will be decided by appropriate government department.

Carbon Credit focuses on reducing the carbon emissions from the root, whereas this scheme will focus on increasing the carbon absorption capacity of earth (carbon sequestration)”

Few question that must be troubling you:

  1. Whether who will check if assessee should purchase Tree Credits or not?
  2. If the Tree Credit claim of assessee is real or bogus?
  3. Who will physically verify the trees, to check if they really exist?

Ever heard of Arborists? They are specialist in trees. They know everything about trees.

These guys will be called as ‘Certified Arborists’ only after they pass a set of exams held by government. Just like a Chartered Accountant is called after he passes exam held by ICAI.

In short, Arborists will be the Chartered Accountants of the assessee’s Trees.

What if a person does not own land? Where will he plant the trees?

The government will conduct Public Plantation Scheme (PPS) every year.

Government will allocate certain area of land every year for this purpose. This land will be allocated for purpose of plantation of trees only by people who don’t own land.

It will be assumed that they own 10,000 sq. feet of land only for the purpose of calculating tree credits. By planting trees in PPS and following the given table they can earn tree credits in the same manner like others who own land.

How is this good for the economy?

  1. This will create tons of employment opportunities.
    • Employment by way of Certified Arborists.
    • Employment in government sector.
    • Employment by way of ancillary activities.
  1. Open up a new area of study, which had not been adopted by people till now.
  1. Government’s tax revenue will increase, as income from selling tree credits and ancillary services and goods.
  1. Encourage people to invest in Chapter VI, which will increase funds with government.
  2. Encourage people to show more income. Reduce Tax evasion.
  3. Best of all, protect environment, and prevent natural disasters.

Those who wish to read this article in detail, visit: treesaviour.blogspot.com I’ve given solutions to many flaws there.

This article is nothing but a piece of paper until Government of India approves and implements it. So do your little contribution by sharing it with others, Thank You 🙂

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